Ash Grove: 125 Years of Excellence

This is a Story About...
A company that is American-owned,
employee-built and customer-driven.
It is Also About
One Company’s...
Vision, Its Mission, Its Values and its
Enduring Commitment to:
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Its Customers
Its Employees’ Future
Production Excellence
Environmental Stewardship and the
Communities it serves
Finally, It’s a Story About...
Kansas Speedway,
Kansas City, KS
Exploration place,
wichita, ks
Where we came from, where we are going
and the employees and customers who
made it – and now make it – all possible.
Chairman’s Message
T
he story of Ash Grove Cement Company is really the
story of the growth of America, beginning with its
great westward expansion in the second half of the 19th
century – fueled by the transcontinental rail system and
the growth of a robust economy.
It was characterized by new cities and towns that soon
became the anchors for unparalled expansion into
the suburbs, driven by the automobile and ultimately
networked by the airplane into the prosperous country we
know today.
It shouldn’t escape notice that one of the great common
denominators of this expansion was a growing
infrastructure – of road surfaces and parking surfaces,
of buildings and warehouses, of shopping complexes
and entertainment centers, of
neighborhood sidewalks and
driveways and homes and
structured garages.
That all takes cement. And
concrete. And aggregate.
A lot of it.
Louisville Plant,
Circa 1929
Seattle Plant,
Present Day
And that is exactly
what Ash Grove
Cement Company
does. We make the
products that build
the infrastructure
of an everchanging,
ever-growing
American landscape
through multiple
companies and nine
cement plants across the
western half of the
United States.
Changing Times, Unchanging Values
We’ve been doing it now for one hundred and twenty-five
years. And we’ve done it based on hard work, employee
commitment, superior products, geographic expansion
and a constant goal of responsible market leadership. And
we did it as a totally American-owned company.
Now the business dynamics change almost every day as we
adjust to new opportunitites and challenges.
But what doesn’t change are the basic values and business
practices we bring to the table.
They are the same ones that have seen us through good
times and bad. Steady growth and economic downturn
– through outright success and, yes, even the occasional
failure.
We have different names for them: values, operating
principles, Rules of the Road. But they all lead to the same
place. And they don’t change ever.
So the story we are about to tell in the following pages
is really in every respect a story of “changing times and
unchanging values.” It is at once our strong foundation
and our even stronger future.
We hope you enjoy it.
For the board, the shareholders and every Ash Grove
employee.
Charlie Sunderland
Chairman
We came out of
the heartland
And grew west
with America;
Now we stand at
the threshold
of a globalizing
world
Still building
the future
On the solid
foundations
of the past
Pictured ABOVE: Control Room, Chanute, KS, with (L-R) Ken Taylor,
Arlene Taylor, and Paul Godinez.
Pictured Right: Finish Mill, Chanute, KS, with Mark Ward
Our Vision, Our Mission, Our Unchanging Values
What We Strive to Become
Our Unchanging “Rules of the Road”
• Open, honest and fair dealing with all customers and suppliers at all times and
in all places
We seek to become the undisputed low-cost leader in the manufacture and
sale of portland cement and related products that consistently add value to our
customers’ businesses.
• Full, candid and responsible participation by every employee in building every
phase of our company’s present success and future growth
• Straightforward communication to, from and between all levels, functions and
How We Will Get There
We will achieve our vision by assuring a consistent supply of reliable products; by
providing world-class service to our customers; by promoting safety, efficiency,
locations of the company
• Active participation in building a better quality of life in every community we
serve and all projects we participate in
product quality and marketplace integrity by regularly upgrading the education,
training and competitive skills of our people; and by exercising our corporate
citizenship obligation toward the communities, customers and markets we serve.
Open and Honest, Candid and Responsible,
Straightforward and Active. It’s what
we’ve believed in for over one hundred
twenty five years.
Our Commitment to Our Customers
From the very beginning, Ash Grove
Cement has been built around a core of
loyal and satisfied customers.
The names change, but the honor roll remains.
We may do it a little differently today than we did 125 years ago, but our commitment
to keep every customer in that elusive “completely satisfied” column is still firmly
fixed in place.
Even in these times of great technological change and tough new demands,
satisfaction is still measured by superior materials, process integrity, competitive
pricing, reliable supply and the forging of a true working partnership between
company and customer.
Many of our customers have known us for decades, some for a shorter time. We
value each and every one of them.
Each and every day.
Qwest Field, Seattle, WA
Hyatt Hotel, Wichita, KS
Our Commitment to Our Employees
They are, in our estimation, the best and the brightest.
They come from diverse backgrounds and a broad geography. And in the process of the growth and assimilation they
have built one of the most dedicated, productive work forces anywhere.
Our commitment to them is straight-to-the-point. You take care of business; we’ll take care of you. Through:
• Competitive compensation and continuous training opportunities
• Plus the constant challenge to do
better, think smarter, give back to
your community and honor and
provide for your family
Years ago we had a company logo that said
“Best on Earth.”
Well, “Best on Earth” also describes our employees. Our
commitment to them is to make sure they stay that way.
Kristen Freeman,
Ash Grove
Technical Center
Pictured L-R
Channa Hay, Seattle, WA; Steve Taylor, Little Rock, AR;
Ellord Steen, Louisville, NE; Brian Farmer, Louisville, NE.
Our Commitment to a Sustainable Environment
Earning “Our License to Operate”
Our Commitment to Our Communities
Ash Grove territory is a lot of ground to
cover – from the Midwest heartland to the
shores of the Pacific.
After water itself, no material is more used on our planet
leadership in emission controls, land-use practices and
than concrete. That fact alone has meant the worldwide
climate protection. This is why Ash Grove was the first
cement industry has a special accountability for
American-owned cement producer to join the Cement
assuring the safe, environmentally-responsible sourcing,
Sustainability Initiative of the World Business Council
And along the way there are a lot of buildings to be repaired and restored,
manufacture and end-use of its products.
for Sustainable Development, a worldwide consortium
renovations to be made and new structures to be built – schools, churches, museums,
of cement companies whose shared goal is to “reduce,
clinics, youth clubs and civic centers.
Environmental stewardship also makes good business.
recycle and reuse,” and by so doing to lower CO2
You can create energy from the “leftovers” of other
emissions a full ten percent by the year 2020.
million, ranging from $150 to a small public school foundation to $1,000,000 to a
industries, and you can lower costs to your customers
while at the same time reducing impact on the natural
Our “Group of 16” now represents more than half the
resource base.
world’s cement production outside China. That’s a
Fact: Ash Grove consumes nearly seven million (that’s
In the last fifteen years alone, the Sunderland Foundation has contributed over $37
health care foundation in Kansas City.
significant beginning, and we are proud of our early
In addition, the Ash Grove Charitable Foundation has awarded over $1.5 million to
involvement and dedicated commitment.
causes near and dear to employee hearts. All of this in addition to the countless hours
spent by individual Ash Grove employees.
right 7,000,000) used tires per year as an energy
producing alternative fuel in six of its plants across the
Environmental stewardship. Social responsibility.
Western U.S. That’s the equivalent of 66,000 tons of coal
Economic prosperity – the three inter-locking faces of
So wherever the time and money is allocated – and for whatever kind of project it
mined from the earth—about 700 rail cars, comprising a
progress. It’s what we seek to achieve as we continue to
supports – the aim is always the same: to build and serve; to create and contribute.
train approximately seven miles long.
earn our public “license to operate.”
And through generosity to others, bring our communities together in common causes.
Fact: Cement used in the manufacture of building and
surfacing products creates five percent of the world’s
carbon dioxide emissions. We recognize that this simple
fact of nature requires all companies like us to take
Our Plants
Import Terminal
Sales Office
Home Office
Cement Terminal
Cement Plant
Hand Picking imestone,
Springfield, MO,
plant circa 1917
Limestone Storage
Dome, Chanute, KS
Ash Grove locations across the country
Pictured in the Header
Chanute, KS, Plant
Present Day
The Sunderland Family
I
n a day and age when big is
He was followed by his son,
frequently confused with better;
the legendary “Mr. Paul,” who
when outsourcing is more “cost
remained active until his death at
efficient” than using local labor;
age 107; by Robert and James, his
and when “hands-off” is more
grandsons and now, by Charlie
fashionable than “hands-on,” the
as chairman and brother Kent as
century-long saga of the Sunderland
vice-chairman – both grandsons,
family reads like a John Wayne
in turn, of Paul.
classic – stand proud, deliver the
goods and don’t bet the ranch on
What is most important is that it
one throw.
works – not so much because it’s
the Sunderland family business,
Since that day in 1909 when Lester
but because it’s the business of
(LT) Sunderland became a vice-
the nearly 3,000 people who
president, one or more members of this pioneering
make up the Ash Grove family of employees – more than
business family have been associated with the successful
300 of whom have worked here for better than a quarter
management of Ash Grove – a company that started with
of a century.
200 acres of Missouri limestone quarry and $10,000 in
capital.
And, oh yes, we might add that the entire Ash Grove
family is more committed than ever to a strong future.
LT assumed the presidency in 1913 and with a steady
hand guided the fledgling company through early growth,
a near-collapse during the Great Depression, and the
rigorous demands of two World Wars.
Sacking Cement,
Chanute, KS, Plant
circa 1920
Pictured in the Header (left to right)
Lester Sunderland, Paul Sunderland,
Robert Sunderland, James Sunderland,
Charlie Sunderland, and Kent Sunderland
Pictured in the Frame
Lester Sunderland, 1950
Ash Grove Timeline
1880
1890
1900
1910
1920
1904 - Lime produced at Ash
Grove’s Springfield plant won top
honors in Louisiana Purchase
Exposition
1882 - Ash Grove White Lime
Association incorporated with a
capital of $10,000
1930
1939
1921 - L.T. Sunderland elected as
President of the Portland Cement
Association
1908 - Ash Grove’s portland
cement plant completed in
Chanute, KS
1891 - Ash Grove’s main offices
moved to Kansas City, MO
1950
1960
1949 - New kiln installed at
Louisville plant, increasing
production to 375,000 tons annually
1970
1929 - Construction completed on
Ash Grove’s second cement plant
in Louisville, NE
1980
1962 - Ash Grove cement
transfer station completed
in Kansas City, KS, to handle
truck deliveries
1964 - Modernization of
Chanute plant increases
capacity to 500,000 tons
annually
1907 - Company reorganized as
Ash Grove Lime and Portland
Cement Company
1909 - Lester T. Sunderland
moves to Kansas City from Omaha
to accept position of Vice President
and Manager.
1940
1964 - Lime plant
constructed in Portland to
supply product to Pacific
Northwest
1968 - Company shortens
name to Ash Grove Cement
Company
1913 - L.T. Sunderland elected
President of Ash Grove
1990
2000+
1982 - Expansion of Louisville plant
increases production capacity to 1,000,000
tons annually
1983 - Company acquires Oregon
Portland Cement Co. in Durkee, OR
and Inkom, ID and Quarry in Blubber
Bay, British Columbia.
1984 - Seattle, WA, plant acquired.
1985 - Foreman, AR, plant acquired.
1987 - Montana City, MT, plant acquired.
1989 - Leamington, UT, plant acquired.
1992 - Expansion and modernization of
Seattle, WA, plant
2000 - Ash Grove aquires Lyman-Richey Co.
2001 - Expansion and modernization of
Chanute, KS, plant
2002 - Ash Grove takes major stake in
Texas and solidifies position as fifth largest
US cement producer after taking full
ownership of Midlothian, TX,
cement plant.
2003 - Ash Grove moves into new
headquarters building in Overland Park, KS
2005 - Moapa, NV, plant project
announced.
2006 - Company expands import terminals
in Houston, TX, and Portland, OR
2007-08 - Construction to begin on $190
million expansion of Foreman,
AR, plant
Schematic drawing of Chanute Plant, circa 1920.
Ash Grove’s home office opened in 2003
Directors & Executives
JAMES P. SUNDERLAND
DAVID H. BAKER
Honorary Chairman of the Board
Vice President - Sales, Western Division
CHARLES T. SUNDERLAND
RONALD V. DELEENHEER
Chairman of the Board
Vice President - Sales, Midwestern Division
KENT W. SUNDERLAND
DAVID W. EZELL
Vice Chairman of the Board & Secretary
Vice President - Human Resources
GEORGE M. WELLS
JIM GATENS
Vice Chairman - Strategic Relationships
Vice President - Sales, Texas Division
CHARLES T. WIEDENHOFT
MICHAEL J. HRIZUK
President and Chief Operating Officer
Vice President - Manufacturing, Western Division
JOHN H. ROSS III
STEPHEN JOYCE
Senior Vice President & General Counsel
Vice President - Manufacturing Services
JOHN W. WEBSTER
EDWIN S. PIERCE
Private Investor
Vice President - Manufacturing, Midwestern Division
CHARLES W. LARSON
KENNETH J. RONE, JR.
Private Investor
Vice President - Manufacturing Services, Western Division
JOHN F. WOODFILL
Vice President - Finance
F. LYNN MARKEL
Private Investor
Preheater Tower,
Chanute, KS, Plant
Online at www.ashgrove.com
FRAN STREITMAN
Vice President - Environmental Affairs
Ash Grove Cement Company Home Office
11011 Cody
Overland Park, Kansas 66210
913.451.8900
800.545.1882
www.ashgrove.com